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The UK Low Carbon Transition Plan Leila Pourarkin Seoul, South Korea March 2010

The UK Low Carbon Transition Plan Leila Pourarkin Seoul, South Korea March 2010. Why did we produce a Low Carbon Transition Plan? What is in it? How did we do it?. Why did we produce a low carbon transition plan?. EU legislation. EU Energy and Climate package

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The UK Low Carbon Transition Plan Leila Pourarkin Seoul, South Korea March 2010

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  1. The UK Low Carbon Transition PlanLeila PourarkinSeoul, South KoreaMarch 2010

  2. Why did we produce a Low Carbon Transition Plan? What is in it? How did we do it?

  3. Why did we produce a low carbon transition plan? EU legislation • EU Energy and Climate package • EU 20% target →UK 34% reduction on 1990 levels • 20% renewable energy by 2020 → UK 15% UK legislation • Climate Change Act 2008 • Five-year carbon budgets • Publish policies to meet budgets • Single statement of climate and energy strategy • Comprehensible plan for business and the public

  4. First ever legally binding carbon budgets MtCO2e 2020 34% emissions reductions The UK will also cut emissions by 80% by 2050 3 018 MtCO2 2 782 MtCO2 2 544 MtCO2 Carbon budgets Projected emissions including policies in the Transition plan Carbon Budget 1 (2008-2012) Carbon Budget 2 (2013-2017) Carbon Budget 3 (2018-2022)

  5. Why did we produce a Low Carbon Transition Plan? What is in it? How did we do it?

  6. The UK Transition Plan sets out how these carbon budgets will be met All sectors will contribute to emission savings

  7. POWER and HEAVY INDUSTRY:The EU Emissions Trading System is at the heart of our strategy The EU ETS started in 2005 3 objectives: Ambitious targets 21% below 2005 levels by 2005 • EU-wide central cap • declining by 1.74% per year UK EU ETS sectors UK non-ETS sectors • 1 • Pricingcarbon • 2 • Setting a cap • Certainty on level of emissions • Electricity • Iron & steel • Pulp & paper • Industrial processes • 3 • Trading allowances • Promote least cost abatement

  8. POWER and HEAVY INDUSTRY:Beyond the EU ETS, other policies are required to meet targets EU ETS + Renewable electricity Fossil fuel with CCS Nuclear 30% target by 2020 4 new CCS demonstrations New nuclear power stations by 2018 40% of UK’s electricity from low carbon sources in 2020

  9. TRANSPORT:Achieving 19% emission cuts in 2018-22 Road transport Making engines more efficient Supporting low carbon vehicles Changing behaviour • New EU car emission standards • £30m for low carbon buses • £400m to encourage development • 10% of transport energy from renewables • £29m for the first ‘Sustainable Travel City’ • £145 million for cycling Rail Increased energy efficiency and more electrification Aviation European flights part of EU ETS from 2012

  10. HOMES AND COMMUNITIES:Achieving 13% emission cuts in 2018-22 Making homes greener Carbon Emissions Reduction Target Community Energy Saving Programme Pilot ‘Pay As You Save’ Clean energy cash-bash, e.g. Feed-in Tariffs • Legal obligation on energy suppliers • To date £1bn/yr invested in households • Low income communities • Implemented by energy companies • Delivers whole-house energy efficiency packages • Removes up-front cost from 500 households • Repayments lower than saving on bills • Scheme linked to property • Financial support for low-carbon electricity, e.g. First 30,000 combined heat and power Helping people to play their part Rolling out smart meters Developing proactive services

  11. HOMES AND COMMUNITIES: Helping to make these changes more affordable, especially for the most vulnerable Impact of these policies = £76 on annual bills, i.e. 6% increase from current energy bills Help for the most vulnerable households • Price: creating mandated social price support • Energy efficiency: Increasing level of grants to vulnerable households • Income: Winter Fuel Payments and Cold Weather Payments

  12. WORKPLACES: Achieving 13% reduction on 2008 levels by 2020 Reduce emissions from workplaces by: Driving emission reductions Promoting energy efficiency Providing advice • EU ETS in heavy industry • Climate Change Levy (CCL) and Climate Change Agreements (CCA) • Loans to SMEs and public sector for low carbon technologies • Carbon Reduction Commitment (CRC): • Targets large non-energy intensive organisations • Cap and trade • Carbon Trust provides advice to businesses delivering • UK low carbon economy could be worth £150bn and employ 1.2 million by 2015 • Up to 500,000 new jobs in UK renewable energy by 2020

  13. FARMING, LAND-USE and WASTE: Achieving 4% of emission savings in 2018-22 Driving down emissions by: FARMING LAND-USE WASTE • More efficient use of fertiliser • Better management of livestock and manure • Encouraging private funding for woodland creation • Supportfor anaerobic digestion of farm waste Research to improve measurement of on-farm emissions

  14. Why did we produce a Low Carbon Transition Plan? What is in it? How did we do it?

  15. How did we do it? • A central team of 10-12 people • Used existing expertise and work • Coordination and new analysis to ensure all added up: • Cross-Government: • Central team worked with all departments with an interest • Cross-Government branding • In six months: late January to mid July 2009 15

  16. THANK YOU! Contact: leila.pourarkin@decc.gsi.gov.uk

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